Lake Michigan Cabin Makeover

Northwest Indiana residents Paul Schwab and Stephen Warner faced a daunting task in updating what they call their "kooky cabin" in Michiana Shores, a summer resort area built in the 1920s and '30s for well-to-do Chicagoans.

"The house was built by a local craftsman named Josh who never used a plan," Paul says. So a gorgeous fieldstone fireplace was blocked by a staircase, first-floor ceilings soared to 15 feet but upstairs roof-lines were so low the windows touched the floor, and the only access to the porch was through a bathroom.

They embarked on an extensive rehab in 2005 with two goals in mind: bringing the old single-season home up to code and staying true to the neighborhood's architectural style.

Click through our slides to find out how these homeowners produced a stunning lakeside home that preserves the past with modern flair.

Michiana Shores is known for homes characterized by log facades, massive stone fireplaces and generous screen porches. "It's a look unique to this community, and we wanted to be in harmony with what's around us," Paul says.

Although they bumped out the master bath and dining area, the cabin's exterior looks remarkably like the original. But that changes one step inside the front door, where dark and rustic give way to light and sophisticated.

"We knew we wanted to lighten the whole thing up," says Stephen, an interior designer who created the English-cottage feel. Stephen set the cottage tone by painting all the wood paneling soft white.

At left, the cabin's great room after renovation. Instead of a skylight over the fireplace, the owners added a cupola with working windows.

Natural materials with light finishes are used throughout the house. Here, a bamboo desk and twig chair fit neatly under a slanted living room ceiling. The painted plank walls and ceilings not only add texture and light but also highlight the rustic details.

The screen porch was enlarged to 20 x 20 feet for entertaining. The porch's new 18-foot-tall stone fireplace includes a raised hearth that's wide enough for sitting. A drop-leaf table behind the lounging sofa serves as a buffet or opens for sit-down dinners. Lightweight wicker chairs are easy to move.